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TMI Blog2021 (7) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... I VIKAS AWASTHY, JUDICIAL MEMBER And SHRI M.BALAGANESH, ACCOUNTANT MEMBER Assessee by : Shri Dr K. Shivaram Revenue by : Shri Tharian Oommen ORDER PER M. BALAGANESH (A.M): These appeals in ITA No.4630/Mum/2019 4631/Mum/2019 for A.Y.2005-06 2010-11 arise out of the order by the ld. Commissioner of Income Tax (Appeals)-47, Mumbai in appeal No.CIT(A)-47/10012/18-19, CIT(A)-47/10014/18-19, CIT(A)-47/10047/18-19 CIT(A)-47/10019/18-19 dated 30/05/2019 (ld. CIT(A) in short) in the matter of imposition of penalty u/s.271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as Act). 2. The only effective issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the levy of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness. 182. More particularly, a penal provision, even with civil consequences, must be construed strictly. And ambiguity, if any, must be resolved in the affected assessee's favour. 183. Therefore, we answer the first question to the effect that Goa Dourado Promotions and other cases have adopted an approach more in consonance with the statutory scheme. That means we must hold that Kaushalya does not lay down the correct proposition of law. Question No. 2: Has Kaush ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd and prejudice. 186. That said, regarding the other assessment year, it reasons that the assessment order, containing the reasons or justification, avoids prejudice to the assessee. That is where, we reckon, the reasoning suffers. Kaushalya's insistence that the previous proceedings supply justification and cure the defect in penalty proceedings has not met our acceptance. Question No. 3: What is the effect of the Supreme Court's decision in Dilip N. Shroff Case (supra) on the issue of non-application of mind when the irrelevant portions of the printed notices are not struck off ? 187 In Dilip N. Shroff case (supra), for the Supreme Court, it is of some significance that in the standard Pro-forma used by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of law which is conceived not only in individual interest but also in the public interest . 190. Here, section 271(1)(c) is one such provision. With calamitous, albeit commercial, consequences, the provision is mandatory and brooks no trifling with or dilution. For a further precedential prop, we may refer to Rajesh Kumar v. CIT [2007] 27 SCC 181, in which the Apex Court has quoted with approval its earlier judgment in State of Orissa v. Dr. Binapani Dei AIR 1967 SC 1269. According to it, when by reason of action on the part of a statutory authority, civil or evil consequences ensue, principles of natural justice must be followed. In such an event, although no express provision is laid down on this behalf, compliance with principle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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